Detroit Makes Top Ten List For Homebuyers Seeking To Relocate

DETROIT – A record number of potential U.S. homebuyers are seeking to relocate, according to a report published last week by real estate brokerage firm Redfin. The report ranked the cities Redfin users appeared most likely to try to leave — San Francisco, Los Angeles and New York topped the list, but Detroit came in No. 7.

A record 32.6 percent of Redfin.com users nationwide looked to move from one metro to another in the second quarter, up slightly from 32.3 percent in the first quarter and roughly 26 percent before the pandemic.

The housing market has slowed following a pandemic-driven buying frenzy, with home sales falling and supply starting to rise due to rising mortgage rates, high home prices, inflation and a faltering economy. But the people who can still afford to buy continue to relocate at unprecedented levels, largely because surging housing costs are putting expensive metros further out of reach. That makes relatively affordable places like Tampa and San Antonio more attractive.

“The typical home in San Francisco or San Jose now costs more than $1.5 million. Add in today’s 5%-plus mortgage rates and you have a sky-high monthly payment,” said Redfin Deputy Chief Economist Taylor Marr. “Those factors, along with more companies giving employees the permanent flexibility to work remotely, are driving a larger portion of buyers to consider homes in other parts of the country. Someone who would have to stretch beyond their budget in Los Angeles may be able to comfortably afford a home in Phoenix or San Antonio.”

Miami was the most popular migration destination in the second quarter, unchanged from the first quarter. Popularity is measured by net inflow, or how many more Redfin.com users looked to move into an area than leave.

Another Florida metro, Tampa, came in second, followed by Phoenix, Sacramento and Las Vegas. Cape Coral, FL, San Diego, North Port, FL, San Antonio, TX and Dallas round out the top 10. Warm, Sun Belt metros are perennial favorites for relocators.

Migration into Florida continues to pick up, with net inflow into Miami, Tampa, Cape Coral and North Port higher than it was a year earlier. New York and Chicago are the most common origins of homebuyers looking to move into those metros.

Top 10 Metros by Net Outflow of Users and Their Top Destinations


1	San Francisco, CA	48,718	45,703	23.2%	23.9%	Sacramento, CA	Seattle, WA
2	Los Angeles, CA	40,632	33,712	19.4%	18.6%	San Diego, CA	Phoenix, AZ
3	New York, NY	35,165	48,731	28.4%	34.3%	Philadelphia, PA	Philadelphia, PA
4	Washington, DC	24,492	18,179	16.7%	15.0%	Salisbury, MD	Salisbury, MD
5	Seattle, WA	18,594	6,177	17.6%	15.4%	Phoenix, AZ	Phoenix, AZ
6	Boston, MA	12,493	5,023	18.1%	15.3%	Portland, ME	Portland, ME
7	Detroit, MI	7,334	3,192	34.2%	26.8%	Cleveland, OH	Cleveland, OH
8	Denver, CO	5,635	9,065	29.4%	30.4%	Chicago, IL	Chicago, IL
9	Chicago, IL	4,769	7,115	13.6%	12.8%	Cape Coral, FL	Cape Coral, FL
10	Minneapolis, MN	2,795	10	24.5%	20.9%	Chicago, IL	Chicago, IL

*Combined statistical areas with at least 500 users in Q2 2022

†Among the two million users sampled for this analysis only

Methodology

The latest migration analysis is based on a sample of about two million Redfin.com users who searched for homes across more than 100 metro areas in the second quarter, excluding searches unlikely to precede an actual relocation or home purchase. To be included in this dataset, a Redfin.com user must have viewed at least 10 homes in a particular metro area, and homes in that area must have made up at least 80% of the user’s searches. Redfin’s migration data goes back to 2017. We published April and May homebuyer migration data last month; the data in this report covers the entire second quarter.